The European Parliament adopted amendments to the regulation of crypto-assets

At the beginning of 2023, the European Union adopted a number of amendments to the current legislation on crypto-regulation in order to improve security and protect the rights of consumers.

One of the most significant changes was the mandatory registration of all cryptocurrency exchanges and wallets in accordance with the requirements of the Anti-Money Laundering Directive (AML) and the Financial Services Directive (MiFID). These changes are aimed at combating financial crime and protecting investors.

In addition, the new amendments require cryptocurrency exchanges and wallets to conduct more thorough identity verification of users and more frequent monitoring of transactions to prevent possible cases of money laundering and terrorist financing.

Another important amendment is the requirement for cryptocurrency exchanges and wallets to provide detailed information on how they protect stored funds and what measures they take to keep users safe.

In addition, new legislative changes introduce stricter rules for Initial Coin Offerings (ICOs), which offer cryptocurrency projects. All ICOs must now comply with the Financial Services Directive (MiFID) and additionally protect the interests of investors and consumers.

There is also a requirement to regulate cryptocurrency exchanges that are operated from outside the European Union, but have customers within it. Cryptocurrency exchanges will have to meet European requirements and obtain permission to operate in the EU.

The new amendments also include the introduction of the concept of “stable coin”, which refers to cryptocurrencies pegged to a stable currency such as the US dollar or the euro. Companies issuing stablecoins must also meet regulatory requirements and be licensed to operate in the EU.

Finally, the new amendments also include regulating the use of cryptocurrencies as a means of payment. Cryptocurrency payments will be regulated in the same way as traditional payment systems such as credit cards and bank transfers.

In general, the legislative changes proposed by the European Parliament are aimed at improving the regulation of the crypto market and ensuring the safety of users and investors. However, they have also raised some concerns among cryptocurrency companies and the public, as they may cause additional costs and complications for businesses.

The full text of the amendments can be found at this link.

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